Enter the initial price paid for a stock and the current dividend into the calculator to determine the yield on cost.

## Yield on Cost Formula

The following formula is used to calculate the yield on cost.

YOC = CD/ IC *100

• Where YOC is the yield on cost (%)
• CD is the current dividend (\$)
• IC is the initial cost of the stock (\$)

## Yield on Cost Definition

A yield on cost is defined as the ratio of the current dividend of stock to its initial purchase price. In other words, a return on a stock with respect to its dividend.

## Yield on Cost Example

How to calculate yield on cost?

1. First, determine the current dividend.

Calculate the current dividend per share.

2. Next, determine the purchase price.

Calculate the initial purchase price of the stock.

3. Finally, calculate the yield on cost.

Calculate the yield on cost using the formula above.

## FAQ

What is yield on cost?

The yield on cost is a measure of the dividend yield based on the initial purchase price of a stock.